Exam 6: Simple Pricing

An owner of local salon realized that by decreasing the prices for haircuts,his revenue increased.This implies that

The government decided to reduce taxes on fast-food to increase revenue.The government assumes that fast-food products have

If quantity demanded for rice falls by 2% when price increases 8%,we know that the absolute value of the own-price elasticity of rice is:

If televisions are normal goods,a fall in income will

Assume Coke and Pepsi are substitutes.Holding other things constant,if the price of Coke increases

In general,the smaller the price elasticity:

When MR<MC firms should raise their prices because

If the income elasticity of demand of houses is exactly 1.40.Due to a recession,you expect incomes to drop by 25% next year.How will consumers adjust their purchase for houses?

Based on the information above,video games have

Assume mortgages and houses are complements in consumption;if the price of mortgages decreases (decreases in interest rates),we would expect to see

Given the information above,the demand is

A price elasticity of demand of 0.67 implies

For substitutes,cross price elasticity of demand is:

Jim recently graduated from college.His income increased tremendously from earning $5000 a year to $60,000 a year.Jim decided that instead of renting he will buy a house.This implies that

If your income goes up by 2% and,in response,the quantity demanded of good x rises by 3%,good x can be considered

The demand for Nike shoes will be _________________ than the demand for shoes in general.

Which one of the following is true?

A research firm finding concluded that the price elasticity of demand for movie tickets is elastic in the afternoon but inelastic in the evenings.Given this information,to increase overall revenue the theatre owners should

A perfectly inelastic demand curve

Which of the following statement is true?